Q2 2025 Eastern Bankshares Inc Earnings Call
Welcome to the Eastern Bank shares Inc, second quarter 2025 earnings conference. Call currently all participant lines are in a listen-only mode. Following the prepared remarks, there will be a question and answer session, please note this event is being recorded for replay purposes.
Today's call will include forward-looking statements, the company cautions investors that any forward-looking statement involves risks and uncertainties, and is not is not a guarantee of future performance.
Actual results May differ materially from those expressed or implied in the forward-looking statements, due to a variety of factors. These factors are described in the company's earnings, press release. And most recent CA 10K filed with the SEC.
Any forward-looking statements made represent Management's views and estimates as of today. And the company undertakes. No obligation to update these statements because of new information, or future events.
The company will also discuss. Both gaap and certain non-gaap Financial measures for reconciliations. Please refer to the company's earnings press release, which can be found at investor easternbank.com.
Bob Rivers: I'd now like the I'd now like to turn the call over to Bob Rivers Eastern executive, chair, and chair of the board of directors. Please go ahead.
Bob Rivers: Thank you, Danny. Good morning, everyone. And thank you for joining our calls this morning.
Bob Rivers: With me today is Eastern CEO, Dennis Sheen and our CFO David Rosado. We believe our strong second quarter performance, underscores the strength of the Eastern franchise and our leading position in the Greater Boston area during the quarter. We've been able to spend more time with our future colleagues at Harbor 1, and our confidence in the opportunities and long-term value creation of our combination.
Bob Rivers: Provides. His only deepened. We are very excited about this partnership and look forward to welcoming Harbor 1 customers and employees to Eastern.
Speaker Change: before turning the call over to Dennis, I wanted to recognize Nancy, Huntington, stagger president and CEO of the Eastern Bank Foundation, who retired earlier this month, after 30 years with our company,
Speaker Change: When Nancy joined Eastern in 1995 to lead our human resources team? She was the first woman to serve on our management committee and went on to actively shape our culture ever since
Speaker Change: She served as a key collaborator in trusted partner, not only for me, but our entire management team organization and in the communities we serve with much gratitude and appreciation. I congratulate Nancy on her retirement and wish her the best in her next chapter with that. I'll hand it over to Dennis.
Speaker Change: Thank you, Bob. We are pleased with our strong second quarter results. As highlighted on page 2 of the earnings presentation and the continuation of positive Trends and many areas of the business.
Dennis Sheen: Operating earnings were 81.7 million and increase of 21% from the first quarter.
Dennis Sheen: Second quarter, performance included, a 21 basis, point expansion in the net. Interest margin to 3.59% and continued Improvement in the operating efficiency ratio to 50.8% due to higher revenues and effective expense management.
Dennis Sheen: These results generated further Improvement in profitability metrics.
Dennis Sheen: operating return on average assets was up, 21 basis points to 1.3% and operating return on average tangible Equity increased from 11.7%, at the end of the first quarter to 13.6%,
Dennis Sheen: Ion dollars up 2% from March 31.
Tangible book, value per share, increased 4% to 1253, reflecting balance, sheet growth and solid Capital generation.
Dennis Sheen: Robust long growth of 8% annualized. This quarter reflects our ongoing focus on profitable organic growth and continued strategic investments in hiring Talent.
Dennis Sheen: Our scale combined with deep. Local knowledge of the community's. We serve is a competitive advantage that consistently builds meaningful relationships and new business opportunities.
Dennis Sheen: Commercial loan pipelines are steady at approximately 500 million dollars and our customers remain resilient despite economic uncertainties.
Dennis Sheen: Deposits, finished the quarter strong with 8% annualized. Growth importantly. Deposit costs, remain stable, highlighting our disciplined approach to pricing and favorable deposit. Mix
Dennis Sheen: Momentum in our wealth management. Business continued this quarter with assets under management, reaching a record high of 8.7 billion dollars.
Dennis Sheen: Credit Trends continue to be positive, reflecting the quality of our underwriting and proactive risk management approach, addressing issues, prudently and quickly.
Dennis Sheen: Non-performing loans of 30 basis points. Improved for the second consecutive quarter and we did not have any net charge offs.
The level of non-performing loans and classified assets. Peaked in the second quarter of last year and continued to improve.
Dennis Sheen: Overall transfer positive and office loan problems are mostly behind us. But we remain cautious in our Outlook.
Dennis Sheen: We continue to closely monitor evolving economic conditions and policies that could impact customers David. I'll hand it over to you to review our second quarter financials. Thank you, Dennis, and good morning everyone. I'll begin on. Slides 3 and 4. We reported net income of 10.2 million or 50 cents per diluted share for the second quarter.
Included in that income is a gap tax. Benefit related to losses from the Investment Portfolio. Repositioning completed in q1 that occurs over the course of 2025.
Speaker Change: on an operating basis, earnings of 41 cents per diluted share, increased 21%, link quarter and increased 78% from a year ago, reflecting the enhanced earnings power of the company with the addition of Cambridge,
Speaker Change: The results were highlighted by net interest margin expansion, fee, income growth and further efficiency ratio Improvement.
Speaker Change: Looking at slide 4, we are encouraged by improving quarterly trans across several Financial metrics, including operating Roa and operating return on average, tangible common Equity, reflecting stronger, earnings performance, and thoughtful balance sheet management.
Speaker Change: Operating Roa of 130 basis points. For the second quarter is up 60 basis points from a year ago.
Speaker Change: While return on average tangible common Equity of 13.6% increased from 6.4% Over the same period we continue to generate positive operating leverage as evidenced by an operating efficiency ratio of 50.8%, which improved for the fourth consecutive quarter supported by higher revenues and and effective expense management.
Speaker Change: Moving to the margin on slide 5 that interest income of 202 million or 206.8 million on an FTE basis. Increase for the fourth consecutive quarter and grew 13.1 million or 7% from q1.
Speaker Change: The growth was driven by margin Improvement, attributable to higher asset yields.
Speaker Change: net income included, debt, discount accretion of 16.5 million up 4.3 million from the prior quarter due to early loan payoffs
Speaker Change: The margin expanded 21 basis points to 359.
Asset yields increased 21 basis points from the prior quarter, primarily driven by higher investment yields reflecting a full quarter impact of the Investment Portfolio. Repositioning completed in early February,
Speaker Change: In addition, the margin was favorably impacted by higher loan yields and a modest reduction in interest bearing. Liability costs.
Speaker Change: Net discount accretion contributed 29 basis points to the margin compared to 22 basis points in the prior quarter.
Speaker Change: Turning the slide 6 down interest income was 42.9 Million compared to a non-interest loss of 236.1 million in q1. The first quarter included pre-tax non-operating losses on the sale of available for sale Securities of 269.6 million related to the Investment Portfolio of repositioning.
Speaker Change: Operating non-interest income was 42.2 Million up. 8 million link quarter.
Speaker Change: Primarily driven by 7 million increase in higher income, from Investments held in W, Rabbi trust for employee retirement benefits.
Speaker Change: The increase was partially offset by 3.2 million in higher Rabbi trust benefit costs reported in non-interest expense.
In addition investment advisory fees and interest rates, swap income through 800,000 and 500500000 respectively.
Speaker Change: Turning the slide 7. We highlight our wealth management business which is an important component of our long-term strategy.
Speaker Change: Wealth management fees which account for nearly half of total operating non-interest income are less sensitive to interest rate fluctuations helping to diversify our earnings.
Speaker Change: Wealth management, posted a solid performance in the second quarter.
Speaker Change: With assets under management, reaching a record high of 8.7 billion, dollars driven by market appreciation.
Speaker Change: These of 17.3 million were up 800,000 dollars. Link water primarily due to seasonal tax preparation fees.
Speaker Change: On slide 8. Non-interest expense of 137 million increased 6.8 million from the first quarter due to higher operating non-interest expense and merger related costs.
Speaker Change: Merger related costs related to the harbor 1 transaction where 2.6 million dollars compared to No Such expenses in the previous quarter.
Speaker Change: Operating, non-interest expense was 134.4, Million up, 4.3 million link quarter.
Speaker Change: The increase was primarily driven by 3.2 million in higher Rabbi trust benefit costs. I mentioned earlier.
Speaker Change: These expenses are reported in the salaries and employee benefits line.
As anticipated following better than expected q1 expenses. We saw a modest uptick in costs across most line items in the second quarter.
Speaker Change: Moving to the balance sheet, starting with deposits on slide 9.
Speaker Change: Period, end deposits, total 21.2 billion and increase of 424 million from the prior quarter. This growth was primarily driven by higher Municipal balances, which we expect to be seasonally lower in the third quarter.
Speaker Change: A sizable portion of the period and growth occurred late in the quarter as a result. Average deposits were consistent with q1
Speaker Change: We continue to benefit from a favorable deposit mix with nearly 50% of the deposits and checking accounts, providing a stable and low cost funding base.
Speaker Change: We remain fully deposited funded with essentially no wholesale funding, which further enhances our balance sheet strength.
Speaker Change: Total deposit costs of 148 basis. Points were consistent with the first quarter, while the cost of interest bearing, deposits, decreased 1 basis point driven by lower CD costs,
Speaker Change: But we remain focused on growing deposits, to support our funding strategy and we are committed to doing so in a disciplined manner.
Speaker Change: Our approach to Gathering deposits. Prioritize it, prioritizes balancing liquidity needs with margin protection.
Speaker Change: On slide 10 period, end loans, increase 385 million link water led by continued strength and commercial lending.
Speaker Change: Increased cni, activity drove 219 million of growth while momentum and create accelerated in June resulting in a higher balance of 117 million.
Speaker Change: Consumer home equity lines continued, its steady trajectory of quarterly growth, adding 53 million of loans.
Speaker Change: commercial delivered, a strong first half of 2025, with nearly 500 million of loan growth from year end 2024,
Speaker Change: And our long tenured relationship managers.
Speaker Change: Our combination of meaningful scale, which allows us to offer a broad Suite of products, and services, and deep, local expertise and presence, differentiates us.
Speaker Change: Our high-quality Investment Portfolio as shown on slide 11 benefited from a full quarter impact of the Securities repositioning completed at an early February.
Speaker Change: as a result, the second quarter portfolio, yield was up, 30 B 33 basis points to 302
Speaker Change: Turning the slide 12 Capital levels, remain robust as evidenced by C1, and tce ratios of 14.4% and 10.8% respectively.
Speaker Change: Consistent with our commitment of returning, Capital to shareholders, we repurchased 3 million dollars worth of shares at an average price of $16.36 prior to our merger announcement in April.
Speaker Change: In addition, the board approved a 13 cent dividend to be paid in September.
Looking at overall asset quality on slide 13 Reserve levels, remain strong as evidenced by an allowance for loan. Losses of 232 million, where a 127 basis, points of total loans,
Speaker Change: These metrics are up from 224 million or 125 basis points at the end of q1.
Speaker Change: Credit Trends, continue to improve during the quarter.
We did not have any net charge offs and non-performing Loans, decreased 36.9 million to 54.7 million, or 30 basis points of total loans.
Speaker Change: The reduction in MLS which increased the coverage ratio to 424% from 245%, at the end of q1 was driven by payoffs achieved through strong execution of our managed asset group.
Speaker Change: Criticized and classified loans 460 million or 3.6% of total loans. Improved from 596 million or 4.82% of total loans at the end of q1.
Speaker Change: Finally, we booked a provision of 7.6 million up from 6.6 million in the prior quarter driven primarily by loan growth.
On slides, 14 and 50. We provide details on total create and create investor office. Exposures
Total commercial real estate, loans are 7.3 billion.
Speaker Change: Our exposure is largely within local markets. We know well and it's Diversified by sector.
Speaker Change: The largest concentration is to multifamily at 2.6 billion which is a strong asset class in Greater Boston due to the ongoing housing shortages.
We have no monthly family non-performing loans and have had no charge on this portfolio for well over the past decade.
Speaker Change: we remain focused on investor office loans, the portfolio of 828 million or 4% of the total loan book, decreased 48 million link water,
Criticized and classified loans of 118 million or about 14% of total, investor office loans improved from 163 million or 19% total investor loans, as of March 31st.
Speaker Change: In addition, our reserved level of 4.9% remains very conservative.
Speaker Change: The investor office loan portfolio includes our relatively limited exposure to the lab and life science sector, which consists of 4 loans, totaling 999 million or less than 1% of total loans.
Speaker Change: 2 of the loans are in Cambridge, 1 in Boston. And the other in Suburban Mass,
Speaker Change: none of these loans were originated as speculative, construction transactions.
Speaker Change: All loans are acru and we continue to monitor these loans as part of our ongoing review of The Office portfolio.
We continue to take a proactive approach in managing investor office. Exposures our credit teams perform thorough assessments of the portfolio, but a quarterly basis and on larger lower risk rated credits, we conduct ongoing monthly reviews.
Speaker Change: This in-depth knowledge. Enables our credit team to take timely and decisive actions as reflected in this quarter's performance.
Speaker Change: A full year 2025 Outlook.
Speaker Change: Please note. This Outlook is for Standalone Eastern and does not contemplate the impact of the harbor 1 merger.
Speaker Change: We are raising our full year loan. Growth Outlook to 3 to 5% up from our previous guidance of 2 to 4% reflecting strong results through the first 6 months.
Deposit growth expectation of 0 to 1% is lower than the previous range of 1 to 2%.
Speaker Change: We continue to anticipate a favorable mix shift from CDs to money markets.
Speaker Change: Based on Lower average, deposit, balances. We now, expect, net. Interesting income to be in the range of 810 to 800 820 million a modest reduction from previous guidance.
With ft FTE margin expectations remaining at 345 to 3555.
Speaker Change: While provision will will be based on evolving credit Trends. We currently anticipate the provision will end the year between 27 and 32 million and improvement from our original projection of 30 to 40 million.
Speaker Change: We increased our forecast for operating fee income, to 145 to 150 million up from 130 to 140 million.
Speaker Change: Operating non-interest expense is now expected to end the year between 530 and 540 million and improvement from our previous range of 535 to 555.
Speaker Change: Our expected full year. Operating tax rate has been revised to 21 to 22% down from 22 to 23%.
Speaker Change: Finally, our current buyback authorization expires this month and we plan to seek regulatory approval for further share repurchases. Post the harbor, 1 close.
Speaker Change: We are committed to returning excess Capital to shareholders, through opportunistically, repurchasing shares.
Before opening up the call for questions. I'd like to take a moment and provide an update on our pending merger.
Speaker Change: In June, we filed our regulatory applications for our merger with Harbor 1 and are working closely with Regulators to obtain the necessary approvals.
Speaker Change: We continue to expect to receive approval and close the transaction in the fourth quarter.
Speaker Change: We also submit at our Branch consolidation, plans in connection with the merger.
Given significant overlap between the 2 Branch networks, we plan to consolidate 13 locations which include 6 Eastern branches and 7 from Harbor 1.
Speaker Change: Pending regulatory approval. We anticipate beginning the consolidation process in q1 2026.
Speaker Change: Integration planning is well underway and we are very pleased with our progress.
We remain focused on delivering a seamless transition for our customers Community Partners and employees.
Speaker Change: This concludes our comments, we will now open up the line for questions.
Speaker Change: At this time, if you would like to ask a question simply press star, followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press the pound key. We'll pause for just a moment to compile the Q&A roster.
Speaker Change: Your first question comes from the line of Mark Fitzgibbons hyper Sandler. Your line is open.
Mark Fitzgibbons: Hey guys. Good morning.
Speaker Change: Morning morning. Um, first question I had maybe for you. David, is it likely that? We'll see more Securities portfolio, restructurings in coming quarters, sort of excluding the you know, any things that you do related to the harbor 1 Diehl.
um,
Speaker Change: Possibly Mark. The, when we think about the use of capital we've, we think about organic growth. We um, we think about share BuyBacks and we obviously think about balance sheet management which would include the portfolio. Repositioning I would say, um, in the sequence of events getting approval and getting back into the market to buy stock, back comes first, um, with that said. And based on, um, interest rates we do have the capital to pursue another restructuring, but it's a little bit on the back burner right now, just because of the merger, and the fact that our current authorization expires at the end of the month,
Okay.
Secondly, on the uh, the big drop you had in the npls. This quarter was almost 40 million. Were there, any loan sales or those were just payoffs or something else?
Speaker Change: Um I what I would say is credit to our managed asset group. Um we worked through and did not sell but worked through and resolved 5 credits in the quarter and that was the driver.
Speaker Change: Okay? And then the last question is sort of more strategic. I don't know if for Barbara Dennis or both but um, following the completion of the harbor, 1 deal. You'll have this new J, this uh, Rhode Island franchise. And I guess I'm curious is the plan to potentially use that as a springboard to move South into places like southern Rhode Island or Connecticut or maybe even eventually New York. Um, because I know historically you've been a little more focused in sort of Eastern Massachusetts and concentrated there. But would you be open to sort of expanding the footprint to some some new markets?
So, uh, mark, this is Dennis, we certainly, um, you know, welcoming the opportunity to engage in the Rhode Island market. And we will look to build out in that market both in terms of our commercial, our consumer businesses and our wealth management business. But we don't have plans to extend, uh, into Connecticut from a banking perspective. As you know, we already have a presence in Connecticut, from a wealth management perspective, uh, or a very happy with that but beyond
Uh, beyond that, we don't currently have plans to expand banking services into Connecticut or down into New York. Certainly would never say, never, but it's not something that we're thinking about strategically at all at this point.
Speaker Change: Great. Thank you.
Speaker Change: Sure.
Speaker Change: Your next question comes from the line of Damon. Delonte KBW. Your line is open.
Damon: Well today, thanks for taking my questions. Um just wanted to talk a little bit about this strong and seeing I go at this quarter, could you just give a little caller as to what drove that kind of maybe? Um what what type of customers um were taking on more credit and you know where these new customers or these more of uh um utilization of of lines that are currently in place.
Damon: Damon. So it's a combination of both. And I, what I would say is we're seeing, you know, while there still is some concern about, uh, economic volatility with tariffs and trade policy Etc. We're seeing increasing Confidence from our customer base and in the market broadly, um, that of course, is subject to change depending on what comes out of Washington. But, uh, certainly part of the impetus for this growth is we have been adding Talent consistently over the past year in our commercial lending division. We're very happy uh, to do that. You know, the message that we've been delivering, uh, both to our commercial division
Damon: Vision. And to our customers is, we are open for business, we are ready to grow, we have to Capital to grow. We have the expertise and it's beginning to bear fruit. You'll note, I think I said in my comments that uh, the the loan pipeline at the end of the second quarter is just as good as it was. At the end of the first quarter summer is typically a little quieter. But but heading into these summer months, we feel very good about that, that pipeline. So it's a combination of customer confidence and that we are investing more in growth within our commercial division
Damon: Damon. It's it's David. The only thing I would add to that was it was broad-based in the first quarter. Um we did call out um franchise and as as being a driver of growth but in the second quarter it was across what we would call all of our. All of our verticals within Sani which is um which was great to see.
Damon: Got it, great, appreciate that caller. Um, and then secondly, on the, on the margin and the Outlook, appreciate the, um, uh, the reaffirmed guidance there. Um, David when we think about the, the core margins. So this quarter, you know, if you take out the, the fair value accretion uh, it was up about 13 basis points. Um, you know, kind of what do you think about from a Cadence standpoint going into the the back half of the year over the next couple quarters. Maybe a few basis points of of kind of grinding higher. Is that fair?
Damon: Securities repositioning. That's we now have a full margin impact of that. Um, so that is tail when it it has has occurred. Um, the
Damon: We do have uh to 2 and a half billion swap book, that is just going to start advertising in the back half of the Year, relatively muted impact. So, when I think about the third quarter impact of that spout thousand dollars pre-tax, um, it'll be more in the fourth quarter and then lastly,
Damon: um,
Damon: the deposit the competitive market for deposits is heated up a bit from our original thinking, so we've experienced
Damon: probably the, the, the most repricing down in our CD book that we'll see for the year the um, we're more neutral in the back half of the Year from existing CDs versus um,
Damon: Market rates. So you put all that together and
Damon: fixed rate commercial lending.
Damon: will have a positive role, Residential Mortgage will have a positive role but
I I do think the margin is roughly flattish rather than I don't want to Telegraph. Um.
You know, sequential increases each quarter at this point, the only caveat and we benefited this quarter was um, what's so hard to predict is accretion income? We had we had 2 large loads that paid off in in June and it used our margin in the quarter.
Speaker Change: Got it. Okay that's helpful. Thanks. And then just like a modeling standpoint. Um,
Is there any way we can any guidance on how to think about the rabbi trust income? Um, and I I guess actually I should ask the the guidance for the full year for, for fee, income and expenses. Um, that's based off of what you've already realized in in Rabbi trust income and expenses. Right? So, would we imply like those are zero and they kind of net each other out when we look at like the full year
Yeah. So
From from a macro perspective, positive Equity markets, lead to positive, Rabbi trust, um, income. Meaning the
Speaker Change: The liability side has more fixed the asset size. We have partial headshot on and it's, and most of that is equity based. So we had a strong Q2 for Equity market returns and that led to positive change for, um,
Speaker Change: Rabbi trust income. Not a perfect Hedge.
Speaker Change: you know, 1 goes through fees, we have the offset in the, in the complex but
Speaker Change: If?
Speaker Change: If markets, remain steady for the back, half of the year, the rabbi trust income and expense, isn't that much of a needle mover either way? But when you have equities up or down,
Speaker Change: Up is a positive impact down as a negative impact.
Speaker Change: Got it. That's helpful. Okay, that's all that I had. Thank you very much.
Damon: Thanks, Damon.
Speaker Change: Your next question comes from the line of Lori hunsicker, C Port, research Partners, the line is open.
Lori Hunsicker: Hi. Thanks. Good morning. Dennis and David. Um, just wanted to to go back to where Damon was. So on margin, do you have a June spot margin?
Um, I have a June spot margin for you. Lauri, what I would say is what I want to give you is a normalized June spot margin because as I as I said to to Dame and we had 2, all the accretion income, um not all of it but the the positive differential link quarter.
Lori Hunsicker: In increasing came in in June. So if you normalize that for the for the quarter, the spot margin in June 355,
Lori Hunsicker: so that's 4 bips above the quarter average.
Lori Hunsicker: In those next 4 quarters.
That you show in the maturity schedule?
um,
Lori Hunsicker: yeah, I so we have
Lori Hunsicker: I believe I'm going from memory here. 1 crit size load.
Lori Hunsicker: It with that's in the next has a maturity within the next year.
Lori Hunsicker: Crewing, um, but it's obviously, it's office. There's some issues around it. Um,
Lori Hunsicker: So it is in there. That's why I was going to call out when you look at that schedule.
Lori Hunsicker: This is the first time since we've been showing that.
There's um no npls and for non accruing loans. In in that um next year
Lori Hunsicker: Of maturities. Yeah, it's exciting. Okay, um, great work. Okay. Um and then maybe just if, if you can sort of more broadly help us think about the fasb's recently proposed ASU with respect to the Cecil double count, if you can just
Lori Hunsicker: Remind us.
Lori Hunsicker: in terms of, you know, what the tangible Book pickup,
Lori Hunsicker: Will look like, you know, just what the Cecil double count is for pastel, current deal, pending Etc. And then what the earnings drop will be from the elimination of the non PCD, just how to think about,
Lori Hunsicker: All of that. And then just you're, you're going to be in early adopter. Is that correct?
Lori Hunsicker: Um, that would be our plan. You know, this whole thing is subject to being finalized. So if it is finalized before the year's over we would plan to early adopt, um, and that would
Just to be clear that only applies to Harbor 1, right? It's not.
Retroactive to Prior Acquisitions. Okay? Okay, thank you for that clarification. Okay, yeah, so, um, so for Harbor 1 verse, um, what we originally announced around the deal, it's, um, between 1 and 1 and a half percent um, less secretive
Lori Hunsicker: It's 1% reduction. In tangible Book, value dilution.
Lori Hunsicker: And from a nerd back perspective, it's about 2/10 of a year so really not that material.
Speaker Change: Um, for us on Harbor, 1 that
Speaker Change: Nonpf PCD Mark is about 42 million dollars was what we had was in the original deal announcement.
Speaker Change: 42, okay. And sorry that 42 million that's an after tax number.
Speaker Change: Um, that's the pre-tax number.
Speaker Change: 3 tax.
Okay, and we, you know, again.
Speaker Change: Do announcement. We assumed 5 years.
5 years, gotcha, that's super helpful. Okay, gotcha. And then 1 last
back to where Mark was, um, exploring with potential geography. Um, can you help us? Think about, you know what, your appetite would be for something like a New Hampshire or a main with that. Would that be on the radar?
Thanks. Well, we already are in New Hampshire Laurie. Uh, that's a terrific market for us. Um, both in both Banking and wealth management. We have sizable operations in New Hampshire. So, so certainly it's a market that, uh, we're looking forward to growing in. Um, we do not have any operations in Maine at this point. Uh, we, we do some wealth management business in Maine just because our offices are so close, particularly to the Portland area. But we, we don't have strategically plans to expand into Maine at this point.
Speaker Change: Okay. But which I guess the question would you consider an acquisition there at some point in the near medium term if if the opportunity presented would mean be a market of Interest or or not so much?
Speaker Change: So not at this point, you know, we again, you know, strategically we're not planning to expand into Maine.
Speaker Change: Okay, great. Thanks for taking my call.
Speaker Change: You're welcome.
Speaker Change: There are no further questions at this time. I will now turn the call over to Bob Rivers for closing remarks.
Speaker Change: Okay, well thank you everyone for your time and your interest this morning and for your questions best wishes for a great rest of Summer.
this concludes today's conference call, you may now disconnect